Post on 11-Jan-2016
Clean Cities Webcast
Cummins WestportGordon Exel
Cummins Westport Inc. Business Overview
2005
CWI EvolutionOld CWI JV
•Automotive - 6/8L transit, refuse & mid range truck (SI)
•Automotive - 15L class & heavy duty truck (HPDI)
•Powergen - 60L low emissions applications
New CWI JV
Automotive 6-9L transit,
refuse & mid range truck (SI)
Technology Partnership
Cummins + WestportHPDI technology development
Westport Demonstration
ProjectsHPDI
Worldwide Focus – Leverage International R&D
ASIA
Mandates increasing
GHG concerns
Increasing infrastructure development
Natural gas consumption increase
FOCUS: China, Thailand & Bangladesh, Taiwan, Phillipines
ASIA
Mandates increasing
GHG concerns
Increasing infrastructure development
Natural gas consumption increase
FOCUS: China, Thailand & Bangladesh, Taiwan, Phillipines
MEXICO
BRAZILAUSTRALIA
CANADA
USA
AMERICAS
Mandates increasing?
Strong incentives?
Rapidly developing infrastructure
Emissions trading potential
LNG import growth
US Energy security concerns
FOCUS: US Non-Attainment Areas, Mexico, Brazil
AMERICAS
Mandates increasing?
Strong incentives?
Rapidly developing infrastructure
Emissions trading potential
LNG import growth
US Energy security concerns
FOCUS: US Non-Attainment Areas, Mexico, Brazil
EUROPE, MIDDLE EAST & INDIA
Potential EU Directive
GHG reduction focus
Growing mandates and incentives
Moderate infrastructure development
FOCUS: UK, France, Eastern Europe, Egypt, India, Iran, Pakistan
EUROPE, MIDDLE EAST & INDIA
Potential EU Directive
GHG reduction focus
Growing mandates and incentives
Moderate infrastructure development
FOCUS: UK, France, Eastern Europe, Egypt, India, Iran, Pakistan
UK
FRANCE
We are moving the JV to have a truly worldwide focus with specific target countries
INDIA
CHINA
•2000 natural gas buses make it the largest LBSI CNG bus fleet in the world
•Cummins Westport is currently the sole natural gas engine supplier to Beijing Transport
•Running 18 hr per day, 7 days per week
•90% of 18,000 bus fleet to be operating on “clean engines” by 2008 Olympics
Beijing Success Story
•400 trained service personnel on Cummins natural gas engines - this is the key to success
2007 Technology
Key Characteristics-Diesel vs. NGWhat Might Be!
L 10 G C 8.3 C Plus ’07 GasEmissions Better Better Better BetterReliability Worse Worse Similar SimilarFuel Cost/Mile
Worse Worse Similar Better
Durability Worse Worse Similar SimilarLCC Worse Worse Worse BetterTimeline 1989 1996 2001 2007
Diesel/CNG Pathways to 2010
Diesel• ULSD• Diesel Particulate Traps• EGR• Nox Absorber or SCR• SCR more efficient but a liquid that will be
regulated and taxed
• Lube Oil– Will require new, more expensive oil
• Different oil filters– Will require new, more expensive
filters
• Crank Case ventilation absorbed in ’07
– Sensor impact
Natural Gas• EGR• TWC
Next Generation TechnologyCooled EGR
• Lower emissions with use of simple passive TWC• Higher efficiency with combustion enhancements
Three Way Catalyst
(as applied to passenger car)
EGR Valve LBSI Oxicat
Turbo
3-Way Catalyst
• Simple passive device, like oxidation catalyst
• Highly effective control of HC, CO, aldehydes, and ultra fine particulates
• ~95% NOx conversion effectiveness• Useful life requirement of 435,000 miles
CNG/Diesel/Hybrid LCC & Emissions Comparison
Key Assumptions
• Assumes 25% CNG/Diesel base fuel cost differential• Hybrid fuel economy based on GM/Allison promotional
material• Hybrid continuous technology improvement assumed -
both capital and battery life• Assumes US transit funded at 83% of initial capital cost
(Huge benefit to hybrid LCC)• Model assumes diesel penalties for EGR and exhaust
aftertreatment• Assumes planned gains in efficiency with 2007 CNG
technology, and includes all capital and operating costs related to infrastructure requirements
NO
x E
mis
sio
n L
eve
l (g
/bh
p-h
r)
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
$0
$500
$1000
$1500
$2000Diesel NOx - Diesel
Annual Incremental Capital and Operating Costs - Urban Bus
2004-2006 2007-2009 2010+
Diesel LCC increases with ULSD, EGR, exhaust aftertreatment efficiency and operating cost penalties
Same engine related costs transferred to diesel hybrid
Baseline: 2004 Diesel
NO
x E
mis
sio
n L
eve
l (g
/bh
p-h
r)
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
$0
$500
$1000
$1500
$2000Diesel Hybrid NOx - Diesel NOx - Hybrid
Annual Incremental Capital and Operating Costs - Urban Bus
2004-2006 2007-2009 2010+
Hybrid LCC flat due to declining initial cost/battery life benefits offset by diesel cost penalties
Diesel Hybrid CWI NOx - Diesel NOx - Hybrid NOx - CWI
NO
x E
mis
sio
n L
eve
l (g
/bh
p-h
r)
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
$0
$500
$1000
$1500
$2000
Annual Incremental Capital and Operating Costs - Urban Bus
2004-2006 2007-2009 2010+
CNG declining LCC - efficiency gains and no complex after treatment costs
CNG is now and will continue to be the emissions leader
Summary
LOWER EMISSONS BEFORE 2010LOW RISK, PROVEN TECHNOLOGYENERGY SECURITYEMERGING ECONOMIC BENEFITS
Gordon Exel
www.cumminswestport.com
Cummins Westport Inc.604 718-8100